Photo by Howard Owens.
There are “several interested developers” working with Sam Savarino, president of the now-defunct Savarino Companies, after he announced closing about a month ago, City Manager Rachael Tabelski says.
In response to a request for an update, Tabelski said Tuesday that Savarino and banking institutions have been involved in talks with those developers, though she did not have or divulge anything “official.”
“As of last week, the construction leading bank confirmed there were no liens on the project, meaning (subcontractors) were paid up to that point,” she said.
When asked about the role of the state Office of Homes and Community Renewal, the agency that granted Savarino $5.7 million of low-income housing tax credits for the project, Tabelski said that “HCR is actively working with any/all developers interested in the project and has promised flexibility in their approach with AMI’s, etc.”
The city had hoped to negotiate the current AMI — area median income level — that had been set at a low to very low versus a higher workforce level, and it appears that it will fall to the next developer to take on that task.
Areas of concern for any construction project would include preserving the structural integrity so that nothing deteriorates or is damaged during the pause in work, and Tabelski said that “the City would like to see the investment winterized first and foremost and remain secured while the project is unwound.”
Savarino Companies celebrated a groundbreaking last year, and chose tenants for the 50 Ellicott St. site in May. It was to open up 55 homes between December of this year and February 2024.
Later this year, Savarino announced financial difficulties stemming from a deal gone wrong at Alfred State College, and shut down operations of his Savarino Companies, with the stipulation that Savarino Management would remain open. He did not contact city officials about the announcement or provide details about what that would mean for Ellicott Station, Tabelski said. Since then, the construction trailer was seen getting hauled off the property.
Since the project is not merely a privately funded one, and involves county and state funding, the process will likely start over with a new developer, which will also likely delay the entire timeline. It’s not up to the city as to who and how it proceeds from here.
“We do not have a say as to who the developer will be to take on the project; it’s a private transaction,” Tabelski said. “This is a complex project and complex situation, and whoever takes on the project will need to be a seasoned and skilled developer who can make the project and finances work. The City remains encouraged by the interest.”
